Make Kitco Your Homepage

Gold, Bitcoin Under Pressure

Commentaries & Views

Gold and Bitcoin have seen some selling pressure over the past couple of days. Gold peaked on Monday and Bitcoin late on Wednesday. The key reversal patterns were unmistakable in both. The metal and the crypto both made recent highs and had dramatic sell-offs from the highs.

On Monday, as it looked like gold was going to the moon and traded as high as $1,442. It then fell apart, falling about 3% since. Our target remains $1,380-$1,390, which should be the lows of the current down move. In identical fashion, Bitcoin was exploding on Wednesday, making three-year highs before reversing 2% from the highs.

These patterns are common in all markets. Traders and investors chase markets higher on the fear of missing out or short covering. Once markets regain equilibrium, they usually consolidate, looking for support or resistance. In this case, both gold and Bitcoin are searching for support. Both markets should resume their upward momentum after finding support -- gold at $1,380-$1,390 and Bitcoin around $10,000.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.